Thursday, January 21, 2016

ObamaCare Employer Mandate Is Worse Than Feared

Yet another study purporting to show that ObamaCare hasn't caused many people to work fewer hours has set off another round of high fives among the law's boosters.

But they should hold their applause, because there's a strong case that ObamaCare's employer mandate is worse than its critics feared — though not necessarily for the reasons they expected.

While ObamaCare has clearly had a negative impact on work hours, which one serious flaw of the latest study — counting 29.5-hour workers as full-time — and other data limitations help to obscure, it's fair to say that the law hasn't curtailed full-time work in a big way. But that's because employers have figured out how to dodge liability by offering "affordable" coverage that costs much more than their modest-wage workers are likely to pay.

CLICK CHART to ENLARGE

Gaming The System

This gaming of the system, which ObamaCare rules invite, has serious consequences. A few million full-time, modest-wage workers — and their spouses — have remained uninsured, with many liable for ObamaCare individual mandate penalties. Another roughly 1 million low-wage workers have opted for the kind of coverage that ObamaCare was supposed to do away with: skinny plans that won't cover hospitalization or surgery but will let them avoid a penalty.

Many other full-time, modest-wage workers are getting more comprehensive coverage via their employers — but with $5,000-plus deductibles that could easily torpedo their finances in a health emergency.